Congressional leaders are still working through what to do after the stony reception they received from the Administration late Wednesday. I was much more comfortable (not that I was happy mind you) with the proposal that had been brought to Bush and Paulson.
The proposal from Congressional Leaders [1] would have limited the amount of the initial bailout money released, and given Congress the ability to restrict the releasing of any additional funds if they were not happy with the results. It also provided limitations on executive compensation and severance for companies that benefit from the bailout, protections from foreclosures for homeowners, and give the government a stake in the companies that benefit.
There was evidently some amount of partisan confusion and contention among Congressional leaders.
I can’t help but get the feeling that Paulson wants nothing more than the maximum amount of power he can grab to make unilateral decisions regarding the use of taxpayer money. His Face The Nation interview on Sunday was informative but unconvincing to me.
On the other hand, if as a government we are going to work to manage this issue for some period of time, I cannot fathom that Congress would be able to manage it effectively. I would rather have one person or a small board work through the day-to-day details as the situation warrants. But I would want someone I can trust and who will accept accountability. Paulson seems to be neither.